| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Download our free ebook on Advances in Corrosion Control Coating Technology

Paint and Coatings Industry News

Main News Page

Sherwin, PPG to Buy Back 30M Shares

Friday, October 21, 2011

More items for Coating Materials

Comment | More

Seeking to reassure and reward investors, both The Sherwin-Williams Co. and PPG Industries announced plans Friday (Oct. 21) for major stock buybacks along with their regular quarterly dividends.

On the eve of releasing its third-quarter financials, and following a difficult second quarter, Sherwin-Williams’ board authorized the repurchase of up 20 million shares of common stock—an amount that, in full, would be close to one-fifth of its common stock outstanding.



The Global Finishes Group helped Sherwin-Williams in the second quarter. The Q3 report is due Tuesday.

The world’s fourth-largest paint and coatings company also declared a regular quarterly dividend of 36.5 cents per common share, payable Dec. 2 to shareholders of record on Nov. 18.

Meanwhile, fresh off a strong third quarter, PPG said it would buy back up to 10 million shares of its stock and declared a dividend of 57 cents per share, payable Dec. 12 to shareholders of record Nov. 10.

Sherwin-Williams: Ups and Downs

Sherwin-Williams’ buyback authorization is its first since October 2007, when the board authorized the repurchase of up to 30 million shares. As of June 30, the company had 106.3 million shares outstanding and a remaining buyback authorization of 4.15 million shares. In the second quarter, it bought back 500,000 shares.

Despite strong sales in protective and marine coatings, the Cleveland-based company was hammered in the second quarter by raw materials costs. Quarterly profit and earnings both declined, and the company cut its full-year profit forecast.

The third-quarter report is due out Tuesday (Oct. 25).

Sherwin-Williams’ shares recently traded at $79.44, up 2.7%, but  “the outlook for its retail paint business remains uncertain as consumer spending and the housing market’s recovery has been uneven,” Dow Jones Newswires reported this week.

Crain’s Cleveland noted that the company’s stock has fallen 7.7% this year.

Calming Investors

Many companies have been expanding their stock repurchase plans in the wake of the market’s August crash and continuing volatility.

Like dividends and stock price increases, share buybacks allow a company to return wealth to shareholders. In a repurchase, a company buys back its shares from the marketplace, reducing the number of outstanding shares and thereby increasing the ownership stake of each investor.

Buybacks also improve a company’s price-earnings ratio, a key indicator of the company’s value.

Sherwin-Williams said its repurchases “will be made from time to time for general corporate purposes.”

“We’re regular buyers of our shares and have been for many years,” said company spokesman Mike Conway. The latest repurchase announcement is in keeping with the practice, he said.

PPG: ‘Reward Our Shareholders’

PPG’s announcements came a day after it released a strong third-quarter report that showed an 11 percent increase in net sales and the fifth consecutive quarter in which it bested its prior quarterly earnings record.

The dividend declared Friday was PPG’s 453rd consecutive dividend payment and its 40th consecutive year of increasing its annual dividend payment. PPG, the world’s second-largest paint and coatings company, has paid uninterrupted annual dividends since 1899.

 PPG CFO David B. Navikas
Stock repurchases are “are an excellent means to reward our shareholders,” said PPG CFO David B. Navikas.

PPG last authorized a repurchase program, for 10 million shares, in October 2010. About 1.7 million shares remained as of Sept. 30, the company said. PPG said the new repurchases would occur “from time to time without prior notice.”

“In the three years since PPG completed the SigmaKalon acquisition in 2008, our average annual cash from operations grew by nearly 30 percent versus the prior five-year average, providing us with additional cash to grow earnings and return to shareholders,” said David B. Navikas, PPG senior vice president, finance and chief financial officer.

“Since the beginning of 2010, we have used a portion of our expanded cash position to repurchase about 16 million shares of stock, reducing PPG’s outstanding share count by nearly 10 percent, as we believe such repurchases are an excellent means to reward our shareholders.”


Tagged categories: Coatings manufacturers; Finance; PPG; Sherwin-Williams

Comment Join the Conversation:

Sign in to our community to add your comments.

Jessup Manufacturing Company
More Traction for Extreme Marine Conditions

Jessup Safety Track® 3800 Military Grade peel-and-stick non-skid tapes and treads provide extra slip resistance for decks. MIL-PRF-24467C Type XI, Black & Gray.

Carboline Company
Fireproofing Solutions

Pyroclad® X1 Thermo-Lag® Pyrocrete® – protecting against hydrocarbon and jet fires, explosions, and cryogenic spills.

Polyval Coatings
Polyflex® Polyurea Linings

Polyflex™ new Polyurea Geotextile Membrane System has been specifically engineered to protect the environment in containment applications.

New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films

PPG Protective and Marine Coatings Group
Industrial strength performance in ONE can.

Now get the durability and protection of two components in one can: Amercoat® ONE, PSX® ONE and Sigmadur ONE.

International Paint LLC
Light Duty Protective Coatings

Check out our expanded line of alkyd, acrylic and waterborne epoxy coatings.

Sherwin-Williams Protective & Marine Coatings

With 4,000 distribution points and 3,700+ years of experience, Sherwin-Williams delivers the products, support and expertise you need, right where you need it.

Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

Wasser Coatings offer a complete range of Moisture Cure Urethane (NEPCOAT approved) systems in addition to Polyurea membranes and linings(NSF).

Mitsubishi Gas Chemical America
Performance Amine 1,3-BAC

A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.

Environmental Controls
Equipment & Service

Temporary climate control equipment. Dehumidifiers,
Heaters, A/C, Power, More…
Call: 866-379-2600

Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker

EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us

© Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail